The IRS states that stimulus payments sent to deceased people should be returned

The IRS states that stimulus payments sent to deceased people should be returned
The IRS states that stimulus payments sent to deceased people should be returned

The Internal Stimulus Service said in a new guide published Wednesday that federal stimulus payments sent to those who died should be refunded.

In a hurry to receive incentive payments as soon as possible, some money was sent to people who had died but had recorded taxes in the last two years, even millions waiting for their payments to arrive. are.

The IRS must verify with another federal agency to obtain a list of the deceased.

Previously, it was unclear whether family members could keep the money, but the IRS now states that full payment must be returned, unless the deceased is married and files a tax return with the spouse who is still alive. In that case, only part of the deceased's payment must be returned, the agency said. If the couple receives $ 2,400, for example, $ 1,200 has to be returned.

If a check was received, it should be sent to the Treasury Department. If the check was cashed or the payment was deposited directly into a bank account, the IRS is asking people to send personal checks or money orders. More instructions were posted online by the IRS.

The IRS started sending money to people who had already filed their 2018 or 2019 tax returns. The IRS has sent more than 122 million payments since April 11, totaling $ 207 billion.

The agency also clarified on Wednesday that other people who may have received payment, but are not eligible, including those who are undeclared, must also return the money.

Eligibility is largely based on income, and excludes individuals who earn more than $ 99,000, heads of household have children with incomes in excess of $ 136,500, and childless married couples make more than $ 198,000.

If there are children in the family, they can earn more. The elimination limit depends on how many children you have. For a typical family of four, the amount is completely exhausted for those with incomes above $ 218,000.

People who can be claimed as dependents for tax purposes, like many college students, are also not eligible for payment, as they are unspecified immigrants who do not have Social Security numbers.

Payments are $ 1,200 for individuals and $ 2,400 for couples, plus $ 500 per dependent.

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